Skip to main content

Full text of "Shipping Practice"

See other formats

ARBITRATION                                    135

sufficient, in the absence of consent by the parties, for the
umpire to base his decision on the notes of the arbitrators.
It is, however, a practice in commercial arbitrations—and
one that the courts will uphold—for each arbitrator to
state the case for his own party, and the umpire then makes
his decision, which is binding upon both parties.

(c) An arbitrator is appointed by each party, and the two
arbitrators then straightway appoint the umpire. These
three persons then consider the dispute and listen to the
evidence as supplied by -witnesses.

The arbitrators when appointed must either make their
decision or appoint an umpire within the period of three
months. After oae month the umpire must make his
decision, but although, these time limits are set, they are
flexible to the extent that the arbitrators and the umpire
may extend their allotted time, provided they give notice
of such extension in writing to the interested parties.

Failure of one party to appoint an arbitrator, gives to the
other party the right of appointing his own arbitrator as
sole arbitrator after giving seven days' notice.

Having agreed to arbitrate, the parties must be bound
by the decision of the arbitrator, and should one party
institute legal proceedings then the other party may make
application to the court for the stay of such proceedings.

The decision of an arbitrator is as binding and equally as
enforceable as that of a court, and in the case of any failure
by the parties to accept the ruling laid down by the
arbitrator, the arbitrator may apply to the courts to up-
hold his decision.